Protected pension?

MEL1981

Hello.

I have been thinking about government changes in the future and if the private pension age was too rise again from 57 upwards. I currently don't have a protected pension age in my standard life pension but this change would derail my future plans.

Does anyone know if there are still pensions on the go that you can transfer into that have protected pension age of 57?

Apologies if this is a stupid question, but it would make a big difference to us and our planning. Although mid 40'sit feels like there is plenty of scope for a government to push the age out yet again!

Thanks
Mel

Keep_pedalling

How old are you?

QrizB

MEL1981 said:

Does anyone know if there are still pensions on the go that you can transfer into that have protected pension age of 57?

The protected age 55 was a bit of a fluke of the way the change was implemented (OK not exactly a fluke, but an uncertain outcome of the consultation process). I don't think there's any way to know today whether anything similar will be possible if/when the age next changes.

dunstonh

Apologies if this is a stupid question, but it would make a big difference to us and our planning. Although mid 40'sit feels like there is plenty of scope for a government to push the age out yet again!

Its 10 years less than state pension age.  So, as the state pension age increases, so will the minimum private pension age.

If you have a protected age it should apply to future increases.  If you don't then it wont.

Emmia

Are you looking at other options that would bridge a gap between you deciding to retire, and your pension starting, such as ISAs or other savings and investments.

MEL1981

Emmia said:

Are you looking at other options that would bridge a gap between you deciding to retire, and your pension starting, such as ISAs or other savings and investments.

Thanks Emmia. Yes this is part of the plan to bridge the gap. But 2 years for instance makes a big difference. Thanks, Mel.

hugheskevi

dunstonh said:

Apologies if this is a stupid question, but it would make a big difference to us and our planning. Although mid 40'sit feels like there is plenty of scope for a government to push the age out yet again!

Its 10 years less than state pension age.  So, as the state pension age increases, so will the minimum private pension age.

The previous government stated that as its policy intent, but the legislation only increases the minimum pension age to 57 from 6 April 2028. There is no automatic link to state pension age minus 10 years, so increasing the minimum pension age in the future would require new legislation.

It may be that the current government and/or a future government will share the policy intent of the previous government and retain the minimum pension age at state pension age minus 10 years, but that cannot be assumed.

It is unclear when the next review of State Pension age will be, and whether the increase to age 68 will be brought forward from the existing date of increasing between 2044-46. The review has to take place by March 2029, but the Conservative govt said it would review by 2026. It is unclear what the intent of the current government is around the date of the review. Whenever the next review of State Pension age takes place, it may be then that there is more clarity about the policy intentions of this government regarding both the State Pension age and minimum pension age.

dunstonh

The previous government stated that as its policy intent, but the legislation only increases the minimum pension age to 57 from 6 April 2028. There is no automatic link to state pension age minus 10 years, so increasing the minimum pension age in the future would require new legislation.

But look at how long it took them to turn intent into legislation last time around.   Obviously, Governments can change their mind and make changes, but the intent is worth noting when it comes to future planning.

i.e. would it be safer to plan for funding for earlier retirement between age 57-58 with an ISA or a pension?   Legislation may say 57 but intent says 58.  (reality could be something else entirely!)